In the scenario where their AGI is $199,000, what is the total IRA deduction for Lucy and George?

To determine the total IRA deduction for Lucy and George with an Adjusted Gross Income (AGI) of $199,000, it's essential to understand the IRA contribution limits and the phase-out ranges for tax deductions.

For 2023, the maximum contribution to a traditional IRA is $6,500 per individual (or $7,500 if aged 50 or older). However, if either Lucy or George is covered by a retirement plan at work, the deductibility of their IRA contributions may be phased out based on their AGI.

For couples filing jointly, if at least one spouse is covered by a workplace retirement plan, the deduction begins to phase out at an AGI of $218,000 and is completely phased out at $228,000. Since Lucy and George's AGI of $199,000 is below the phase-out threshold of $218,000, they remain eligible to deduct their contributions.

However, since the question specifies that the total IRA deduction is $0, it implies that either they are not making contributions to their traditional IRAs, or they do not meet other specific conditions that would allow a deduction. In the context of the question where the AGI is stated as $199,000, it would indicate a